Palm Oil
• At the close of trading last week, market sentiment in the palm oil market was BULLISH.
• The bullish sentiment was due to the continued uncertainty around domestic market obligations (DMO) and export taxes from Indonesia despite the reversal of their palm oil export ban on 23 May.
• The market consensus is that the DMO is likely to be based on the size of refineries and local demand. Market players think this may mean that less palm oil than expected will be exported from Indonesia at least until export rules and obligations are better understood, which caused players to secure volumes now, supporting prices.
• The Mintec Benchmark Prices for Palm Oil CIF Rotterdam DH-0 [Mintec Code: CPOR] was assessed at $1,725.50/mt on Friday, up $125.50/mt on the week.
Dairy
• At the close of trading last week, market sentiment in the dairy markets was BULLISH.
• Prices across the dairy complex increased marginally on the week. Stronger buying interest was reported by multiple sources, while sellers have moved out of the market as they still are not experiencing any pressure to sell.
• The assessment for Butter Unsalted EXW Europe [Mintec Code: J116] was made at €7,200/mt, up €150/mt week-on-week.
Pork
• At the close of trading last week, market sentiment in the European pork market was MIXED.
• While the majority of underlying countries traded sideways on the week, the Polish market saw a decline of €0.07/kg. Buying interest remains low across the European market according to multiple market sources.
• Deadweight prices in the European pork market were unchanged last week with the Mintec Benchmark Prices for Pig Deadweight Grade S EXW Europe [Mintec Code: BW56] assessed at €1.82/kg at the last assessment on 24 May.
Coffee
• At the close of trading last week, market sentiment in the coffee market was MILDLY BULLISH.
• After reaching a six-month low several weeks ago, NY “C” market futures have rallied over the past two weeks, first on a frost worry in Brazil that did not materialise, followed by a combination of dry weather forecasts in Brazil as well as recent Conab production estimates for the crop currently being harvested.
• Differentials have been mixed, but have broadly held firm despite the rising futures prices. The Mintec Benchmark Prices for Brazil MTGB 3/4 GC FOB [Mintec Code: CDB2] was last assessed at -17/lb on Thursday, up 1 cent on the week.
Cocoa
• At the close of trading last week, market sentiment in the cocoa market was NEUTRAL.
• Futures prices in London have eased on the back of good weather in key growing regions of West Africa. Thin trading volumes however have the potential to increase volatility over the coming week.
• Many market participants have noted that cocoa liquor spot availability remains limited throughout Europe as demand has picked up slightly and the high powder prices continue to favour powder + butter production.
• The Mintec Benchmark Prices for Cocoa Butter EXW Western Europe spot [Mintec Code: COBS] were assessed at €4,040/mt, down €126/mt on the week.
Almonds
• At the close of trading last week, market sentiment in the almond market was NEUTRAL.
• Scattered trading was observed in the US almond markets over the assessment period. The Mintec Benchmark Prices for standard 5% almonds FAS US [Mintec Code: NAL1] were assessed at $1.77/lb on 26 May, down 2 cents/lb on the week and in line with the last reported trade.
• The strength of the US dollar remains a focal point with European buyers reporting a shift towards hand-to-mouth purchasing behaviour in hopes that currency will shift in their favour.
• Prices for nonpareil kernels eased slightly, but have yet to break below the bottom of the band in which they have been trading over the past several weeks. The Mintec Benchmark Prices for NPX 27/30 FAS US [Mintec Code: NP03] were assessed at $2.45/lb on 26 May, down 2 cents/lb on the week and in line with the last reported trade.
